Farming Exit Decision by Age Group: Analysis of Tobacco Buyout Impact in Kentucky

This article analyzes factors that affected the decision to exit tobacco production in the wake
of the tobacco buyout program using the data collected through a survey of Kentucky tobacco
farmers. Using the Heuristic logistic regression model, we find that the decision to exit tobacco
growing was affected by efficiency considerations, availability of off-farm employment,
and exit barriers. Availability of off-farm employment had the strongest effect on
farmers younger than 46, while the effect of variables measuring efficiency and exit barriers
seemed to be more uniform across age groups. Based on the results we suggest several policy
interventions.